ImmuPharma (IMM) signed an exclusive licence and development agreement with US-based Avion Pharmaceuticals to co-develop and commercialise Lupuzor™ in a deal worth over $70 million.
LupuzorTM is a peptide therapeutic and autophagy immunomodulator for systemic lupus erythematosus (SLE or lupus), a potentially life-threatening auto-immune disease.
Under the deal, ImmuPharma is eligible to receive milestone payments that include a $5 million milestone payment after regulatory approval of Lupuzor™ in lupus, and up to $65 million based on sales targets.
Avion will also pay ImmuPharma up to 16% in royalties, as well as fund the full expected costs of the new Phase III trial up to $25 million, targeted to commence in 2020 after the two agree with the US FDA on trial design.
Art Deas, CEO of Avion Pharmaceuticals commented: "After in-depth due-diligence around Lupuzor™, its mechanism of action and learnings within the initial Phase III results, we believe that Lupuzor™ has a unique position within lupus that sets it apart from competition, and we are delighted to be extending our footprint within this therapeutic area.”
He added: “With approximately 1.5 million patients in the US suffering from lupus, there is a significant unmet need for a safe and effective drug for this debilitating disease that we believe Lupuzor™ can meet.”
Shares in ImmuPharma were trading 114% higher at 15.15p on Thursday morning
Dimitri Dimitriou, ImmuPharma's CEO and Robert Zimmer, President & Chief Scientific Officer, said: "We are delighted to be entering into this partnership with Avion, a company which has a strong track record within late stage clinical development and commercialisation of products within the US, the largest market for lupus patients.”
They added: “Importantly, Avion's specialist sales team is well respected within the rheumatologist community, whose focus is on prescribing safe and efficacious treatments for auto-immune diseases such as lupus. This makes it a perfect fit for Lupuzor™.”
US-based Avion Pharmaceuticals has launched more than 55 New Drug Candidates (NDCs) and 20+ generic product extensions since 2012.
Under the deal, Avion also has the rights, for the US, to explore further opportunities within Lupuzor™'s peptide platform for other auto-immune indications outside of lupus.
Both firms believe LupuzorTM has potential to treat other auto-immune diseases and the agreement sees ImmuPharma receive additional milestone payments of $5 million for each additional approval, other than lupus.
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